Announcement PDF Information Form and Checklist Annexure 1 (Mining Entities) Name of entity FULCRUM LITHIUM LTD ABN/ACN/ARBN/ARSN 665 528 307 This Annexure forms part of the Information Form and Checklist supplied by the entity named above to support its application for admission to the official list of ASX Limited (ASX) as an ASX Listing. A reference in this Annexure to JORC means the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Resources - 2012 Edition, a copy of which is included in Annexure 5A of the Listing Rules. Terms used in this Annexure which are defined in JORC (including, without limitation, ‘exploration target’,’ exploration results’,’ mineral resource’, ‘ore reserve’ and ‘competent person’) have the same meaning as in JORC. No Item Location/Confirmation General requirements Complete this section if the Offer Document includes any reference to an exploration target, exploration results or estimates of mineral resources or ore reserves. 1. Where in the Offer Document does it state that the exploration target, exploration results or estimates of mineral resources or ore reserves (as the case may be) have been prepared and reported in accordance with JORC (Listing Rule 5.6)?1 Sections 1.1 1.2 of the Independent Geological Report (IGR) completed by Global Geological Services LLC included as section 10 of the Prospectus. Refer also to the Revised Independent Geological Report (Revised IGR) included as section 12 of the Supplementary Prospectus. 2. Where in the Offer Document does it state: • that the exploration target, exploration results or estimates of mineral resources or ore reserves (as the case may be) are based on, and fairly represent, information and supporting documentation prepared by a named competent person2 or persons (Listing Rule 5.22(a) for material mining projects and JORC clause 9 for other projects); • whether the competent person is an employee of the mining entity or a related party and, if not, the name of the competent person’s employer (Listing Rule 5.22(b) for material mining projects and JORC clause 9 for other projects)? The Important Notice section of the Prospectus and Section 1.2 of the IGR included as section 10 of the Prospectus. Refer also to Section 1.1 of the Revised IGR included as section 12 of the Supplementary Prospectus. • the name of the professional organisation of which the competent person is a member (Listing Rule 5.22(c) for material mining projects and JORC clauses 9 and 11 for other projects); and • that the competent person has given his or her prior written consent as to the form and context in which the exploration target, exploration results or estimates of mineral resources or ore reserves (as the case may be) and the supporting information are presented in the Offer Document (Listing Rule 5.22 for material mining projects and JORC clause 9 for other projects)? 1 2 The Offer Document must use terminology consistent with the terms in Figure 1 of JORC. Terms such as ‘mining inventory’ or ‘mineable resource’ are not allowed. JORC clause 11 defines a ‘competent person’ as a minerals industry professional who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ‘Recognised Professional Organisation’, as included in a list available on the JORC and ASX websites. The person must have a minimum of five years relevant experience in the style of mineralisation or type of deposit under consideration and in the activity which that person is undertaking. If the competent /cont. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 1 No Item Location/Confirmation 3. Please enter “Confirmed” in the column to the right to indicate that the Offer Document discloses any potential conflict of interest any of the named competent persons may have and, if it does, indicate where in the Offer Document that disclosure has been made (JORC clause 9)? Confirmed. There is no conflict of interest which has been confirmed in the Important Notice section of the Prospectus and Section 1.2 of the IGR included as section 10 of the Prospectus. Refer also to Section 1.1 of the Revised IGR included as section 12 of the Supplementary Prospectus. 4. Is there an Independent Geologist’s Report included in the Offer Document? If so, where does it state that any exploration target, exploration results or estimates of mineral resources or ore reserves (as the case may be): Yes, an Independent Geologist’s Report is included as section 10 of the Prospectus. Refer also to the Independent Geologist’s Report included as section 12 of the Supplementary Prospectus. Section 1.2 of the IGR included as section 10 of the Prospectus. • are based on, and fairly represent, information and supporting documentation prepared by a named competent person or persons; Refer also to Section 1.1 of the Revised IGR included as section 12 of the • the name of the professional organisation of which the competent person Supplementary Prospectus. is a member; and • that the competent person has given his or her prior written consent as to the form and context in which the exploration target, exploration results or estimates of mineral resources or ore reserves (as the case may be) and the supporting information are presented in the report (Listing Rule 5.22 for material mining projects and JORC clause 9 for other projects)? Is the Independent Geologist’s Report either a technical assessment report, No. valuation report, or fairness and reasonableness report prepared in accordance with the Valmin Code? If so, where does it state in the report the declarations required by section 12 of the Valmin Code? person is preparing documentation on exploration results, the relevant experience must be in exploration. If the competent person is estimating, or supervising the estimation of mineral resources, the relevant experience must be in the estimation, assessment and evaluation of mineral resources. If the competent person is estimating, or supervising the estimation of ore reserves, the relevant experience must be in the estimation, assessment, evaluation and economic extraction of ore reserves. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 2 No Item 5. Does the Offer Document include a “metal equivalents” calculation? If so, where does the Offer Document include the following information required under JORC clause 50: Location/Confirmation No. • individual grades for all metals included in the metal equivalent calculation; • except where the information is commercially sensitive, the assumed commodity prices for all metals;3 • assumed metallurgical recoveries for all metals and a discussion of the basis on which the assumed recoveries are derived (metallurgical test work, detailed mineralogy, similar deposits, etc);4 • a clear statement that it is the entity’s opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold; and • the calculation formula used? 6. Please enter “Confirmed” in the column to the right to indicate that the Offer Confirmed. Document does not include any reference to “in situ” or “in ground” values (JORC clause 51). Exploration targets Complete this section if the Offer Document includes any reference to an exploration target. 7. Where in the Offer Document does it disclose a detailed explanation of the basis for the exploration target, including whether the target is based on actual exploration results or on proposed exploration programmes and a specific description of the level of exploration activity already completed (JORC clause 17)? See sections 2.2, 6.4, 6.4.1and 6.4.3. of the IGR included as section 10 of the Prospectus. The exploration target is also reference in section 4.4 of the Prospectus. Refer also to the Revised IGR included as section 12 of the Supplementary Prospectus. 8. Where in the Offer Document does it state the proposed exploration activities designed to test the validity of the exploration target and the timeframe within which those activities are expected to be completed (JORC clause 17)? See section 6.4.3 of the IGR included as section 10 of the Prospectus. Sections 4 of the Prospectus and 2.3 of the IGR outline the exploration budget and program for the Company’s projects. Refer also to the Revised IGR included as section 12 of the Supplementary Prospectus. 9. Where in the Offer Document does it include the required statement by a named competent person taking responsibility for the form and context in which the exploration target appears (JORC clause 17)? Sections 1.2 and 2.2 of the IGR included as section 10 of the Prospectus and the Important Information section of the Prospectus. Refer also to the Revised IGR included as section 12 of the Supplementary Prospectus. 3 4 Actual assumed prices should be disclosed. It is not sufficient to refer to a “spot price”, without disclosing the actual price in question. Where the actual assumed prices used are said to be commercially sensitive, the entity must disclose sufficient information, perhaps in narrative rather than numerical form, for investors to understand the methodology it has used to determine these prices. Estimates of metallurgical recoveries for each metal must be used to calculate meaningful metal equivalents. Reporting on the basis of metal equivalents is not appropriate if metallurgical recovery information is not available or able to be estimated with reasonable confidence. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 3 No Item 10. Where in the Offer Document does it include the required clarification statement that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a mineral resource and that it is uncertain if further exploration will result in the estimation of a mineral resource (JORC clause 17)?5 Location/Confirmation See sections 2.2 and 6.4.3 of the IGR included as section 10 of the Prospectus. Refer also to the Revised IGR included as section 12 of the Supplementary Prospectus. This is also included in section 4.4 of the Prospectus. 11. Please enter “Confirmed” in the column to the right to indicate that the following JORC requirements have been satisfied: • information relating to the exploration target has been expressed so that it cannot be misrepresented or misconstrued as an estimate of a mineral resource or ore reserve and the terms “resource” and “reserve” have not been used in this context (JORC clause 17); Confirmed. • the exploration target is expressed as a tonnage and grade range and as Confirmed. an approximation only (JORC clause 17); • the Offer Document includes a description of the process used to determine the grade and tonnage ranges used to describe the exploration target (JORC clause 17); Confirmed. • there are no “headline statements” in the Offer Document referring to the exploration target (JORC clause 17); and Confirmed. • the exploration target does not include a “metal equivalent” estimate or calculation (JORC clause 50). Confirmed. Exploration results Complete this section if the Offer Document includes any reference to exploration results 12. Where in the Offer Document is the separate report in relation to each of the criteria in sections 1 and 2 of JORC Table 1 (Listing Rule 5.7.1)?6 See Table 1 of the IGR included as section 10 of the Prospectus. Refer also to the Revised IGR included as section 12 of the Supplementary Prospectus. 13. Where in the Offer Document is the separate table setting out the following information for material drill-holes (unless the entity determines that the information is not material):7 N/A - no drill-hole data reported. • easting and northing of the drill-hole collar; • elevation or RL of the drill-hole collar; • dip and azimuth of the hole; • down hole width and depth; and • end of hole (Listing Rule 5.7.2)? 5 6 7 Note that the clarification statement must be within the same paragraph as the first reference to the exploration target in the Offer Document. If an entity that determines that any of the criteria is not material to understanding the exploration results, the entity must identify the criteria and explain why it has determined that it is not material to that understanding. An entity that determines that a drill-hole table setting out the information described above is not material, is not required to attach the table to the Offer Document but must explain why it has determined that the table is not material to understanding the exploration results. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 4 No Item Location/Confirmation 14. Please enter “Confirmed” in the column to the right to indicate that the following JORC requirements have been satisfied: • if the exploration results relate to mineralisation not classified as a mineral resource or ore reserve, then estimates of tonnages and average grade have not been assigned to the mineralisation except as an exploration target in accordance with JORC clause 17 (JORC clause 18); Confirmed. • if true widths of mineralisation are not reported, an appropriate N/A - no drilling/assay data has been qualification has been included in the Offer Document (JORC clause 19); reported. • clear diagrams and maps designed to represent the geological context have been included in the Offer Document which include a plan view of drill hole collar locations and appropriate sectional views (JORC Confirmed. clause 19); • there has been no selected disclosure of information such as isolated assays, isolated drill holes, assays of panned concentrates or supergene Confirmed. enriched soils or surface samples, without placing them in perspective (JORC clause 19); • if the Offer Document includes exploration results based on rock chip or grab sampling, the location (represented as a table, diagram or map), total number and assay results for the sampling have been included for each sample so as to ensure samples are representative and not selectively reported (JORC clause 19 and JORC Table 1); and • if the Offer Document reports visual results in the absence of assays, it does not include any reference to the grade or economic potential of the mineralisation (Example D in Annexure A of Guidance Note 8). Confirmed. N/A – no visual results have been reported. Mineral resources Complete this section if the Offer Document includes any reference to an estimate of mineral resources. 15. Where in the Offer Document does the competent person explicitly discuss the basis for the reasonable prospects for eventual economic extraction of the mineral resource (JORC clause 20)? N/A – no mineral resources reported. 16. Where in the Offer Document does the competent person explicitly discuss the technical and economic support for the cut-off assumption applied (JORC clause 20)? N/A. 17. Where in the Offer Document does it disclose the relevant geology and geological interpretation (Listing Rule 5.8.1 first bullet point)?8 N/A. 18. Where in the Offer Document does it disclose the entity’s sampling and subsampling techniques (Listing Rule 5.8.1 second bullet point)? N/A. 19. Where in the Offer Document does it disclose the entity’s drilling techniques (Listing Rule 5.8.1 third bullet point)? N/A. 20. Where in the Offer Document does it disclose the criteria used for classification, including drill and data spacing and distribution – this includes separately identifying the drill spacing used to classify each category of mineral resources (inferred, indicated and measured) where estimates for more than one category of mineral resource are reported (Listing Rule 5.8.1 fourth bullet point)? N/A. 8 Note that the information referred in items 17-24 should be disclosed independently from the separate report in relation to each of the criteria in sections 1, 2 and 3 (and 5 if appropriate) of JORC Table 1 required under Listing Rule 5.8.2 mentioned in item 25 below. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 5 No Item 21. Where in the Offer Document does it disclose the entity’s sample analysis method (Listing Rule 5.8.1 fifth bullet point)? Location/Confirmation N/A. 22. Where in the Offer Document does it disclose the entity’s estimation methodology (Listing Rule 5.8.1 sixth bullet point)? N/A. 23. Where in the Offer Document does it disclose the entity’s cut-off grade(s), including the basis for the selected cut-off grade(s) (Listing Rule 5.8.1 seventh bullet point)? N/A. 24. Where in the Offer Document does it disclose mining and metallurgical methods and parameters, and other material modifying factors considered to date (Listing Rule 5.8.1 eighth bullet point)? N/A. 25. Where in the Offer Document is the separate report in relation to each of the criteria in sections 1, 2 and 3 (and 5 if appropriate) of JORC Table 1 (Listing Rule 5.8.2)?9 N/A. 26. Please enter “Confirmed” in the column to the right to indicate that the N/A. following JORC requirements have been satisfied: • the mineral resource estimate has been appropriately classified according to increasing geological confidence (ie inferred, indicated or measured – JORC clause 20-24); • if an estimation of an inferred mineral resource is presented on the basis of extrapolation beyond the nominal sampling spacing and taking into account the style of mineralisation, the report contains sufficient information to inform the reader of: • the maximum distance that the resource is extrapolated beyond the sample points; • the proportion of the resource that is based on extrapolated data; • the basis on which the resource is extrapolated to these limits; and • a diagrammatic representation of the inferred mineral resource showing clearly the extrapolated part of the estimated resource (JORC clause 21); • the mineral resource estimate has been rounded off to appropriately significant figures, is referred to as an estimate not as a calculation and, in the case of inferred mineral resources, is qualified by the term ‘approximately’ (JORC clause 25); • where contained metal or mineral content has been reported, corresponding tonnages and grade have also been reported (JORC clause 26); • inferred, indicated or measured resources have not been reported as a combined estimate unless details for the individual categories have also been provided (JORC clause 26); and • resource estimates have not been aggregated with reserve estimates to report a single combined figure (JORC clause 26). 9 If an entity that determines that any of the criteria is not material to understanding the estimate of mineral resources, the entity must identify the criteria and explain why it has determined that it is not material to that understanding. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 6 No Item Location/Confirmation Ore reserves Complete this section if the Offer Document includes any reference to an estimate of ore reserves. 27. Where in the Offer Document does it disclose the material assumptions and N/A – no ore reserves reported. the outcomes from any pre-feasibility study (PFS) or feasibility study (FS), as the case may be, defining the ore reserves (Listing Rule 5.9.1 first bullet point)?10 28. Where in the Offer Document does it disclose the criteria used for classification, including the classification of the mineral resources on which the ore reserves are based and the confidence in the modifying factors applied (Listing Rule 5.9.1 second bullet point)? N/A. 29. Where in the Offer Document does it disclose the mining method selected and other mining assumptions, including mining recovery factors and mining dilution factors (Listing Rule 5.9.1 third bullet point)? N/A. 30. Where in the Offer Document does it disclose the processing method selected and other processing assumptions, including the recovery factors applied and the allowances made for deleterious elements (Listing Rule 5.9.1 fourth bullet point)? N/A. 31. Where in the Offer Document does it disclose the basis of the cut-off grade(s) or quality parameters applied (Listing Rule 5.9.1 fifth bullet point)? N/A. 32. Where in the Offer Document does it disclose estimation methodology (Listing Rule 5.9.1 sixth bullet point)? N/A. 33. Where in the Offer Document does it disclose material modifying factors, including the status of environmental approvals, mining tenements and approvals, other governmental factors and infrastructure requirements for the selected mining methods and for transportation to market (Listing Rule 5.9.1 seventh bullet point)? N/A. 34. Where in the Offer Document is the separate report in relation to each of the criteria in sections 1, 2, 3 and 4 (and 5 if appropriate) of JORC Table 1 (Listing Rule 5.9.2)?11 N/A. 10 11 If the economic assumptions are commercially sensitive to the entity, an explanation of the methodology used to determine the assumptions rather than the actual figure can be reported. If an entity that determines that any of the criteria is not material to understanding the estimate of ore reserves, the entity must identify the criteria and explain why it has determined that it is not material to that understanding. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 7 No Item Location/Confirmation 35. Please enter “Confirmed” in the column to the right to indicate that the N/A. following JORC requirements have been satisfied: • the reserve estimate has been appropriately classified according to increasing geological confidence (ie probable or proved – JORC clause 29-32); • the reserve estimate has been rounded off to appropriately significant figures (JORC clause 33); • where present metal or mineral content has been reported, corresponding tonnages and grade have also been reported (JORC clause 34); • proved and probable reserves have not been reported as a combined estimate unless details for the individual categories have also been provided (JORC clause 34); • reserve estimates have not been aggregated with resource estimates to report a single combined figure (JORC clause 36); and • where figures for both resources and reserves are reported, a statement has been included in the Offer Document which clearly indicates whether the resources are inclusive of, or additional to, the reserves (JORC clause 36). Production targets or financial information derived from production targets Complete this section if the Offer Document includes any reference to a production target or financial information derived from a production target (such as forecast revenues, forecast costs of production, forecast capex, a net present value, internal rate of return or payback period). 36. Where in the Offer Document does it disclose the material assumptions on which the production target is based (Listing Rule 5.16.1)? N/A – no production targets reported. Specifically, where in the Offer Document does it disclose the material assumptions about the ‘modifying factors’ in the JORC Code? N/A. Specifically, where in the Offer Document does it disclose the material assumptions about the scheduling of development and production and the availability of project finance? N/A. 37. Where in the Offer Document does it state that the reserves or resources underpinning the production target have been prepared by a competent person in accordance with the JORC Code (Listing Rule 5.16.2)?12 N/A. 38. Where in the Offer Document does it state the relevant proportions of ore reserves, mineral resources, exploration target and qualifying foreign estimates underpinning the production target (Listing Rule 5.16.3)? N/A. 39. Is a proportion of the production target based on an inferred mineral resource? If so, please indicate where in the Offer Document the required cautionary statement has been included stating that:13 “There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised” (Listing Rule 5.16.4)? N/A. 12 13 Note that disclosing a production target that is based solely on an exploration target or solely on a combination of inferred mineral resources and an exploration target is prohibited (Listing Rule 15.5(a)), as is disclosing a production target based solely or partly on historical estimates or foreign estimates (other than qualifying foreign estimates) of mineralisation (Listing Rule 15.5(b)). A production target that is based solely on an inferred mineral resource must comply with Listing Rule 5.16.6. Note that the cautionary statement must be proximate to, and have equal prominence as, the reported production target. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 8 No Item Location/Confirmation 40. Is a proportion of the production target based on an exploration target? If so, where in the Offer Document does it include a statement of the factors that lead the entity to believe that it has a reasonable basis for reporting the production target in that context (Listing Rule 5.16.5 and section 8 of Guidance Note 31 Reporting on Mining Activities)? N/A. Please also indicate where in the Offer Document the required cautionary statement has been included stating that:14 “The potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised.” (Listing Rule 5.16.5 and section 8 of Guidance Note 31 Reporting on Mining Activities)? N/A. 41. Is the Production Target based solely on an inferred mineral resource? If so, where in the Offer Document does it include a statement of the factors that lead the entity to believe that it has a reasonable basis for reporting the production target based solely on inferred mineral resources (Listing Rule 5.16.6 and section 8.7 of Guidance Note 31 Reporting on Mining Activities)? N/A. Please indicate where in the Offer Document it states the level of confidence with which the inferred mineral resources are estimated and the basis for that level of confidence (Listing Rule 5.16.6) N/A. Please also indicate where in the Offer Document the required cautionary statement has been included stating that:15 “There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. The stated production target is based on the company’s current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.” (Listing Rule 5.16.6) N/A. And provide a copy of the technical report required under Listing Rule 5.16.6 to support the production target with a sufficient level of confidence and which has been prepared by, or under the supervision of, a named independent competent person or persons and includes the information referred to in Listing Rules 5.22(b) and (c) N/A. 42. Is the production target based on a portion of inferred mineral resources and/or an exploration target in addition to ore reserves and/or measured and indicated mineral resources? If so, please enter “Confirmed” in the column to the right to indicate that the entity is satisfied that the respective proportions of inferred mineral resources and the exploration target are not the determining factors in project viability (section 8.5 of Guidance Note 31 Reporting on Mining Activities) 14 15 N/A. Note again that the cautionary statement must be proximate to, and have equal prominence as, the reported production target. Note again that the cautionary statement must be proximate to, and have equal prominence as, the reported production target. ASX Listing Information Form and Checklist Annexure 1 (01/12/19) Page 9 No Item Location/Confirmation Please also enter “Confirmed” in the column to the right to indicate that the N/A. inferred mineral resources and exploration target do not feature as a significant proportion early in the mine plan (section 8.5 of Guidance Note 31 Reporting on Mining Activities) 43. Is a proportion of the production target based on qualifying foreign estimates that have not been verified and reported as mineral resources or ore reserves in accordance with the JORC Code after 3 years from the date the qualifying foreign estimates were initially reported? If so, where in the Offer Document is the statement and explanation referred to in Listing Rule 5.14.2 (Listing Rule 5.16.7)? N/A. 44. Does the Offer Document include forecast financial information derived from a production target relating to: • the mineral resources and ore reserves holdings of the entity (an entity level production target); or • a material mining project of the entity (or two or more mining projects which together are material to the entity)? If so, where in the Offer Document does it include all material assumptions on which the forecast financial information is based (Listing Rule 5.17.1)?16 N/A. Where in the Offer Document does it state the production target from which the forecast financial information is derived, including all the information contained in Listing Rule 5.16 (Listing Rule 5.17.2) N/A. If a significant proportion of the production target is based on an exploration target, where in the Of